Question

The following information applies to the questions displayed below.) Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash Accounts recelvable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 75,000 140,000 66,500 227,000 $ 508,500 $ 88,000 311,000 109,500 $ 508,500

Answer 1

Solutions:

н 8 9 10 11 Schedule of expected cash collection - Beech Corporation Particulars July August September Accounts Receivables from June $140,000.00 Cash received for July Sale $133,000.00 $247,000.00 Cash received for August Sale $140,000.00 $260,000.00 Cash received for September Sale $136,500.00 Total $140,000.00 $380,000.00 $400,000.00 $136,500.00 12 Budgeted Cash Collection $273,000.00 $387,000.00 $396,500.00 $1,056,500.00 13 14 17 18 19 Material Purchase Budget - Beech Corporation Particulars July August September Budgeted Sales $380,000.00 $400,000.00 $390,000.00 Cost of Sales (70% of Sales) $266,000.00 $280,000.00 $273,000.00 Add: Desired ending inventory (25% of COGS of next month) $70,000.00 $68,250.00 $71,750.00 Less: Opening Inventory $66,500.00 $70,000.00 $68,250.00 Total $1,170,000.00 $819,000.00 $71,750.00 $66,500.00 Budgeted purchases (in dollars) $269,500.00 $278,250.00 $276,500.00 $824,250.00 Total 29 Schedule of expected cash disbursement for merchandise purchases - Beech Corporation 27 Particulars July August September 28 Payables from June $88,000.00 $88,000.00 July Purchases $107,800.00 $161,700.00 $269,500.00 30 August Purchases $111,300.00 $166,950.00 $278,250.00 31 September Purchases $110,600.00 $110,600.00 32 33 Total payments in month $195,800.00 $273,000.00 $277,550.00 $746,350.00 34 35 36 37 38 40 43 44 46 47 48 49 50 51 Sheet181 (29) Sheet181 (30) Sheet578 ) Sheet31 ) She

ZK Income Statement - Beech Corporation For Quarter Ended - September 30 Particulars Sales Cost of Sales Gross Profit Operating Expenses: Selling and adminstrative expenses (52000*3) Amount $1,170,000.00 $819,000.00 $351,000.00 12 $156,000.00 Net Income $195,000.00 Balance Sheet- Beech Corporation 30-Sep Particulars Amount Assets: $250,150.00 $253,500.00 $71,750.00 Cash ($75,000 + $1056,500 - $746,350 - $45000*3) Accounts receivables ($390,000*65%) Inventory Plant and equipment net of depreciation ($227,000 - $7,000*3) Total Assets $206,000.00 $781,400.00 25 26 27 28 Liabilities and stockholder's Equity: Accounts payable ($276500*60%) Common Stock Retained Earnings ($109500 + $195,000) Total liabilities and stockholders equity $165,900.00 $311,000.00 $304,500.00 $781,400.00 32 33 36 40 41 Sheet181 (29) Sheet181 (30) ) Sheet578 ) Sheet31 ) She